Dogecoin has experienced a dramatic plunge, with its price dropping over 10% to trade around $0.119. This decline comes on the heels of a significant surge in long liquidations, which soared past $60 million within the last 24 hours.
These liquidations mark a noteworthy spike compared to Dogecoin’s usual trading activity in the futures market. Remarkably, Dogecoin’s liquidation volume was on par with Bitcoin’s, which also saw just over $60 million in liquidations during the same timeframe. Given Bitcoin’s much larger trading volume and market capitalization, this event underscores the severity of Dogecoin’s market shift—the largest daily liquidation impact for Dogecoin since May 2021.
The broader cryptocurrency market faced substantial turbulence, with over $444 million in liquidations occurring within the same period. A significant portion of these liquidations, approximately $382 million, were long positions, as reported by Coinglass.
Bearish Sentiment Dominates Dogecoin Market
Coinglass data reveals a bearish sentiment dominating the Dogecoin market. The open interest in Dogecoin, which represents the total number of unsettled futures contracts, has plummeted by more than 18%, now standing at $642 million. Additionally, the long-short ratio for Dogecoin futures indicates a bearish outlook, with the ratio climbing above 0.9, suggesting that traders are heavily favoring short positions.
The downturn isn’t isolated to Dogecoin alone. Other large-cap memecoins have similarly experienced declines. The GMCI Meme index, which tracks the leading memecoins by market capitalization, has fallen over 10% in the past day, currently sitting at 249.41.
As Dogecoin continues to trade at approximately $0.119, reflecting a significant drop of over 10% in the last 24 hours, the market sentiment remains cautious. Traders and investors are closely watching for further developments in the cryptocurrency landscape.
